Question
On March 1, 2020, Sabina Inc.s application for a patent of a new product was granted. Legal and registration costs incurred for the patent were
On March 1, 2020, Sabina Inc.s application for a patent of a new product was granted. Legal and registration costs incurred for the patent were $75,000. The patents legal life is 20 years but management estimates that the patent will be useful to the company for 15 years starting on March 1, 2020. Sabina Inc. incurred $26,000 in legal fees to successfully defend their patent on June 1, 2021 (assume there are 14 years left in the Patents life from the date the lawsuit was successfully resolved on June 1, 2021) Required: What is the carrying value (Cost less Accumulated Amortization) of the Patent on December 31, 2021? (show all work)
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Financial Accounting Theory
Authors: Craig Deegan
2nd Edition
0077126734, 978-0077126735
